The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you consent to the use of cookies. 
Competitive Advantage of "Low-Wage" Countries Often Exaggerated

The cost competitiveness of emerging economies is not as strong as suggested by wage differences when labor compensation is adjusted for productivity. Lower wage costs go hand in hand with lower productivity. Generally, emerging economies have an advantage in unit labor cost if the gap in labor productivity between emerging and advanced economies is smaller than the wage gap. The key for emerging economies is to promote productivity through technological change and innovation to match wage increases which inevitably occur in a rapidly growing economy. Advanced countries need to keep labor compensation in check with productivity.

Support Our Work

Support our nonpartisan, nonprofit research and insights which help leaders address societal challenges.

Donate

OTHER RELATED CONTENT

RESEARCH & INSIGHTS

WEBCASTS

Economy Watch

Economy Watch

November 11, 2020

Window On

Window On

December 02, 2020

Economy Watch

Economy Watch

December 09, 2020

CONFERENCES & EVENTS

The 2021 IBI/Conference Board Health and Productivity Forum

The 2021 IBI/Conference Board Health and Productivity Forum

October 05 - 06, 2021 | (Chicago, Illinois)

COUNCILS

BLOGS

PRESS RELEASES & IN THE NEWS